Bridging the gap: why, how and when HR analytics can impact organizational performance

Na Fu,Steven Mccartney

doi:10.1108/md-12-2020-1581

Abstract

PurposeDespite the growth and adoption of human resource (HR) analytics, it remains unknown whether HR analytics can impact organizational performance. As such, this study aims to address this important issue by understanding why, how and when HR analytics leads to increased organizational performance and uncover the mechanisms through which this increased performance occurs.Design/methodology/approachUsing data collected from 155 Irish organizations, structural equation modeling was performed to test the chain mediation model linking HR technology, HR analytics, evidence-based management (EBM) and organizational performance.FindingsThe study's findings support the proposed chain model, suggesting that access to HR technology enables HR analytics which facilitates EBM, which in turn enhances organizational performance.Originality/valueThis research contributes significantly to the HR analytics and EBM literature. First, the study extends our understanding of why and how HR analytics leads to higher organizational performance. Second, the authors identify that access to HR technology enables and is an antecedent of HR analytics. Finally, empirical evidence is offered to support EBM and its impact on organizational performance.

Highlights

The concept and application of data and analytics in management have seen increasing attention as researchers and professionals aim to understand how data can be transformed into actionable insights leading to improved organizational performance (Chierici et al, 2019; Ferraris et al, 2019; Santoro et al, 2019; Singh and Del Giudice, 2019)
By theorizing the chain model between access to human resource (HR) technology, HR analytics, evidencebased management (EBM) and organizational performance, this study extends our understanding of why and how HR analytics leads to higher organizational performance
This study aims to understand whether HR departments that have access to HR technology at any point on the continuum can adequately leverage it to enable HR analytics

Summary

Introduction

The concept and application of data and analytics in management have seen increasing attention as researchers and professionals aim to understand how data can be transformed into actionable insights leading to improved organizational performance (Chierici et al, 2019; Ferraris et al, 2019; Santoro et al, 2019; Singh and Del Giudice, 2019). This interest has transcended various management disciplines, including human resources management (HRM), which is evidenced by the growing number of HR departments implementing HR analytics to improve decision-making (Marler and Boudreau, 2017; Fernandez and Gallardo-Gallardo, 2020; McCartney et al, 2020). The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

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